“Local investors are responding to the good results in trading seen in U.S. markets overnight, particularly the two percent gain for the major indices, which has given local investors confidence after yesterday’s destruction,” said Michael McCarthy, chief market strategist at CMC Markets.

“Its clear from the market action that growth stocks and sectors are being favoured this morning,” he added.

The materials sector was the best performing on the index, with mining heavyweights BHP Billiton and Rio Tinto rising about 1.6 percent and 2.2 percent each.

The Australian materials index rose as much as 2.3 percent, its best intraday gain since late-July.

Rio Tinto is scheduled to release its 2017 financial results later in the day. The miner is expected to report a 70 percent rise in its underlying net profit after tax for the year, UBS said in a research note.